American Railcar Industries, Inc. Reports Strong Third Quarter

American Railcar Industries, Inc. Reports Strong Third Quarter

Highlights

  *2013 Quarterly Revenues of $198.9 million vs. prior year of $168.2 million
  *2013 Quarterly Operating Earnings of $35.6 million vs. prior year of $30.3
    million - up 17%
  *2013 YTD Revenues of $553.4 million vs. prior year of $504.0 million
  *2013 YTD Operating Earnings of $106.7 million vs. prior year of $80.1
    million - up 33%

ST. CHARLES, Mo., Oct. 30, 2013 (GLOBE NEWSWIRE) -- American Railcar
Industries, Inc. (ARI or the Company) (Nasdaq:ARII) today reported its third
quarter 2013 financial results. "We are pleased with another quarter of strong
financial performance and operating results, driven by continued strong tank
railcar shipments along with a slight increase in hopper railcar shipments.
The strong tank railcar mix generated operational leverage and efficiencies.
As of September 30, 2013, we had a backlog of approximately 6,300 railcars.
During October 2013, we accepted a multi-year order from Chevron Phillips
Chemical Company LP for 2,750 plastic pellet covered hopper railcars for
delivery from 2014 through 2016," said Jeff Hollister, President and Interim
CEO of ARI.

Third Quarter Summary

Total consolidated revenues were $198.9 million for the third quarter of 2013,
up 18% when compared to $168.2 million for the same period in 2012. Revenues
increased across all three of the Company's segments, with the largest dollar
increase in the manufacturing segment.

Total manufacturing segment revenues were $205.8 million for the third quarter
of 2013, an increase of 11% over the $185.4 million for the same period in
2012. The primary reason for the increase was higher volumes of railcar
shipments as well as strong tank railcar market conditions. Manufacturing
segment revenues for the third quarter of 2013 included estimated revenues of
$34.8 million related to railcars built for the Company's lease fleet,
compared to estimated revenues of $38.2 million related to railcars built for
the Company's lease fleet in the third quarter of 2012. Such revenues are
based on an estimated fair market value of the leased railcars as if they had
been sold to a third party, and are eliminated in consolidation. Revenues for
railcars built for the Company's lease fleet are not recognized in
consolidated revenues as railcar sales, but rather as lease revenues in
accordance with the terms of the contract over the life of the lease. During
the third quarter of 2013, ARI shipped approximately 1,640 railcars, including
approximately 280 railcars built for the Company's lease fleet, compared to
approximately 1,460 railcars for the same period of 2012, including
approximately 310 railcars built for the lease fleet. Railcars built for the
lease fleet represented approximately 17% of ARI's railcar shipments during
the third quarter of 2013 compared to approximately 21% for the same period in
2012.

Total leasing segment revenues were $8.3 million for the third quarter of
2013, an increase of 95% over the $4.3 million for the same period in 2012.
The primary reason for the increase in revenue was an increase in the number
of railcars on lease and an increase in the average lease rate. ARI had
approximately 3,780 railcars in the Company's lease fleet at the end of the
third quarter of 2013, compared to approximately 2,190 railcars at the end of
the same period in 2012.

Total railcar services segment revenues were $19.7 million for the third
quarter of 2013, an increase of 16% over the $17.0 million for the same period
in 2012. The increase is largely attributed to certain repair projects being
performed at the Company's hopper railcar manufacturing facility during 2013.

Consolidated earnings from operations for the third quarter of 2013 were $35.6
million, an increase of 17% over the $30.3 million for the same period in
2012. The increase in consolidated earnings was primarily due to increased
earnings across all three of the Company's segments, driven by higher revenues
as discussed above, with the largest dollar increase in the manufacturing
segment. Operating margins were 18% for both the third quarter of 2013 and
2012.

Manufacturing earnings from operations were $41.7 million for the third
quarter of 2013 compared to $34.2 million for the same period in 2012. This
increase was due primarily to an increase in railcar shipments and operating
leverage as a result of strong tank railcar production volumes. Manufacturing
earnings from operations for the third quarter of 2013 included $9.6 million
of estimated profit on railcars built for the Company's lease fleet compared
to $5.0 million for the same period in 2012, which is eliminated in
consolidation and is based on an estimated fair market value of revenues as if
the railcars had been sold to a third party, less the cost to manufacture.

EBITDA, adjusted to exclude share-based compensation and other income on short
term investments (Adjusted EBITDA), was $43.3 million for the third quarter of
2013, compared to $36.7 million for the comparable quarter of 2012. The
increase was driven by increased earnings from operations. A reconciliation of
the Company's net earnings to EBITDA and Adjusted EBITDA (both non-GAAP
financial measures) is set forth in the supplemental disclosure attached to
this press release.

Net earnings for the third quarter of 2013 were $21.0 million, or $0.98 per
share, compared to $14.0 million, or $0.66 per share, for the comparable
quarter of 2012. The increase in earnings was primarily a result of increased
earnings from operations across all three of the Company's segments, as
discussed above, and lower interest expense. Interest expense was $1.5 million
for the third quarter of 2013 compared to $4.4 million in the same period in
2012. The decrease was the result of a more favorable rate obtained on the
Company's lease fleet financing and lower average debt balance as a result of
the Company's early redemption of its 7.5% senior unsecured notes (Notes).
During the quarter ended September 30, 2012, ARI redeemed $100.0 million of
the outstanding Notes, resulting in a charge of $2.3 million, comprised of a
premium of $1.9 million paid on the redemption of the debt and a non-cash
charge of $0.4 million for the accelerated write-off of a portion of the
deferred financing fees.

Year-to-Date Results

Consolidated revenues for the first nine months of 2013 were $553.4 million
compared to $504.0 million for the comparable period in 2012.

Total manufacturing segment revenues were $611.5 million for the first nine
months of 2013 compared to $616.5 million for the comparable period in 2012.
The primary reasons for the decrease in revenues were lower covered hopper
railcar shipments and lower revenues from certain material cost changes that
ARI generally passes through to customers on a dollar for dollar basis. This
combined decrease was partially offset by a higher mix of tank railcars
shipped, which generally sell at higher prices due to more material and labor
content, and improved general market conditions for tank railcars.
Manufacturing segment revenues for the first nine months of 2013 included
estimated revenues of $135.3 million relating to railcars built for the lease
fleet, compared to estimated revenues of $170.3 million relating to railcars
built for the lease fleet in the comparable period in 2012. Such revenues are
based on an estimated fair market value of the leased railcars as if they had
been sold to a third party, and are eliminated in consolidation. Revenues for
railcars built for the Company's lease fleet are not recognized in
consolidated revenues as railcar sales, but rather are recognized as lease
revenues in accordance with the terms of the contract over the life of the
lease. The Company shipped approximately 4,850 railcars, including
approximately 1,190 railcars to leasing customers, during the first nine
months of 2013, which was 17% lower than the approximately 5,870 railcars
shipped during the same period of 2012, of which 1,690 were to leasing
customers. Railcars built for the lease fleet represented approximately 25%
and 29% of ARI's total railcar shipments in the first nine months of 2013 and
2012, respectively.

Consolidated earnings from operations for the first nine months of 2013 were
$106.7 million, up 33% from $80.1 million for the comparable period in 2012.
Consolidated earnings from operations for the first nine months of 2013 and
2012 excluded $29.5 million and $28.3 million, respectively, of profit on
railcars built for the lease fleet which is eliminated in consolidation and is
based on an estimated fair market value of revenues as if the railcars had
been sold to a third party, less the cost to manufacture. Operating margins
were 19% for the first nine months of 2013 compared to 16% for the comparable
period of 2012.

The Company recorded a loss from joint ventures of $2.3 million for the first
nine months of 2013 compared to break-even earnings for the comparable period
in 2012. The increase in the Company's joint venture loss during the nine
month period ended September 30, 2013 was due to production levels decreasing
from 2012 levels on weak demand for railcar types other than tank railcars for
ARI's domestic joint ventures. Additionally, the Company's India joint venture
incurred higher interest expense and higher depreciation expense in 2013
compared to 2012 due to the completion of construction of the manufacturing
plant in India.

Adjusted EBITDA was $129.1 million for the first nine months of 2013, up by
$27.6 million from $101.5 million for the comparable period in 2012.

Net earnings for the first nine months of 2013 were $62.5 million, or $2.93
per share, compared to $39.4 million, or $1.84 per share, for the comparable
period in 2012. This increase was due to higher earnings from operations as
well as a 60% decrease in interest expense for the nine months ended September
30, 2013, compared to the same period in 2012. The decrease in interest
expense was a result of a lower interest rate secured on the lease fleet
financing and a lower average debt balance due to the Company's early
redemption of the Notes. Offsetting these increases to earnings was a non-cash
charge of $0.4 million for the accelerated write-off of a portion of the
deferred financing fees due to the Company's early redemption of the remaining
$175 million of its Notes in March 2013. This charge recognized during the
nine months ended September 30, 2013 was $1.9 million lower than the $2.3
million charge incurred during the nine months ended September 30, 2012,
related to the redemption of the initial $100.0 million of Notes, as discussed
above.

Cash Flow and Liquidity

The Company's strong earnings have contributed to cash flow from operations of
$118.0 million during the first nine months of 2013. As a result of continued
growth of the Company's lease fleet and redemption of the remaining $175
million of the Notes during the first quarter of 2013, partially offset by
borrowings under the lease fleet financing, the Company's cash balance was
$115.0 million at September 30, 2013.

At the board meeting in October, the Company's board of directors declared a
cash dividend of $0.25 per share of common stock of the Company to
shareholders of record as of December 13, 2013 that will be paid on December
20, 2013.

Backlog

ARI's backlog as of September 30, 2013 was approximately 6,300 railcars, with
an estimated market value of $814.5 million. This backlog includes
approximately 2,430 railcars for lease with an estimated market value of
$331.5 million.

Conference Call and Webcast

ARI will host a webcast and conference call on Thursday, October 31, 2013 at
10:00 am (Eastern Time) to discuss the Company's third quarter 2013 financial
results. To participate in the webcast, please log-on to ARI's investor
relations page through the ARI website at www.americanrailcar.com. To
participate in the conference call, please dial 877-745-9389. Participants are
asked to log-on to the ARI website or dial in to the conference call
approximately 10 to 15 minutes prior to the start time. An audio replay of the
call will also be available on the Company's website promptly following the
earnings call.

About ARI

ARI is a leading North American designer and manufacturer of hopper and tank
railcars. ARI and its subsidiaries sell and lease railcars manufactured by the
Company to certain markets. In addition, ARI repairs and refurbishes railcars,
provides fleet management services and designs and manufactures certain
railcar and industrial components. ARI provides its railcar customers with
integrated solutions through a comprehensive set of high quality products and
related services. More information about American Railcar Industries, Inc. is
available on its website at www.americanrailcar.com.

Forward Looking Statement Disclaimer

This press release contains statements relating to expected financial
performance and/or future business prospects, events and plans that are
forward-looking statements. Forward-looking statements represent the Company's
estimates and assumptions only as of the date of this press release. Such
statements include, without limitation, statements regarding industry trends,
customer demand for the Company's products, the Company's leadership roles and
capabilities; the Company's strategic objectives and long-term strategies, the
growth of the Company's leasing business, anticipated future production rates,
the Company's plans regarding future dividends, the Company's joint ventures,
the Company's backlog and any implication that the Company's backlog may be
indicative of future revenues. These forward-looking statements are subject to
known and unknown risks and uncertainties that could cause actual results to
differ materially from the results described in or anticipated by the
Company's forward-looking statements. The payment of future dividends, if any,
and the amount thereof, will be at the discretion of ARI's board of directors
and will depend upon the Company's operating results, strategic plans, capital
requirements, financial condition, provisions of its borrowing arrangements,
applicable law and other factors the Company's board of directors considers
relevant. Other potential risks and uncertainties include, among other things:
basing financial or other information on judgments or estimates based on
future performance or events; the ability to successfully manage the
day-to-day aspects of the Company's business, including the ability of the
Company to successfully attract, motivate and retain executive officers and
key employees, both individually and as a group; the impact of an economic
downturn, adverse market conditions and restricted credit markets; ARI's
reliance upon a small number of customers that represent a large percentage of
revenues and backlog; the health of and prospects for the overall railcar
industry; prospects in light of the cyclical nature of the railcar
manufacturing business; the highly competitive nature of the railcar
manufacturing, railcar leasing and railcar services industries; the conversion
of ARI's railcar backlog into revenues; anticipated trends relating to
shipments, leasing, railcar services, revenues, financial condition or results
of operations; the anticipated production schedules for our products and the
anticipated financing needs, construction and production schedules of our
joint ventures; the risks associated with international operations and joint
ventures; the Company's ability to manage overhead and variations in
production rates; fluctuating costs of raw materials, including steel and
railcar components and delays in the delivery of such raw materials and
components; fluctuations in the supply of components and raw materials that
ARI uses in railcar manufacturing; the risk of being unable to market or
remarket railcars for sale or lease at favorable prices or on favorable terms
or at all; the ongoing benefits and risks related to the Company's
relationship with Mr. Carl Icahn (the chairman of the Company's board of
directors and, through his holdings of Icahn Enterprises L.P., the Company's
principal beneficial stockholder) and certain of his affiliates; the risks,
impact and anticipated benefits associated with potential joint ventures,
acquisitions or new business endeavors; the implementation, integration with
other systems or ongoing management of the Company's new enterprise resource
planning system; the risk of the lack of acceptance of new railcar offerings
by ARI's customers and the risk of initial production costs for the Company's
new railcar offerings being significantly higher than expected; the
sufficiency of the Company's liquidity and capital resources; compliance with
covenants contained in the Company's financing arrangements; the impact and
costs and expenses of any litigation ARI may be subject to now or in the
future; and the additional risk factors described in ARI's filings with the
Securities and Exchange Commission. The Company expressly disclaims any duty
to provide updates to any forward-looking statements made in this press
release, whether as a result of new information, future events or otherwise.


AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)


                                                   September30, December31,
                                                    2013          2012
                                                   (unaudited)   
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                           $ 115,020     $ 205,045
Short-term investments—available for sale           —             12,557
securities
Accounts receivable, net                            30,739        36,100
Accounts receivable, due from related parties       12,844        3,539
Inventories, net                                    102,051       110,075
Deferred tax assets                                 11,777        4,114
Prepaid expenses and other current assets           7,724         3,917
Total current assets                                280,155       375,347
Property, plant and equipment, net                  157,429       155,893
Railcars on operating leases, net                   321,608       220,282
Deferred debt issuance costs                        2,029         2,374
Goodwill                                            7,169         7,169
Investments in and loans to joint ventures          40,190        44,536
Other assets                                        8,028         4,157
Total assets                                        $ 816,608     $ 809,758
Liabilities and Stockholders' Equity                             
Current liabilities:                                             
Accounts payable                                    $ 58,038      $ 64,971
Accounts payable, due to related parties            1,486         2,831
Accrued taxes                                       7,252         2,693
Accrued expenses                                    23,123        5,739
Accrued compensation                                16,639        17,940
Accrued interest expense                            299           4,465
Short-term debt, including current portion of       6,655         2,755
long-term debt
Total current liabilities                           113,492       101,394
Long-term debt, net of current portion              189,762       272,245
Deferred tax liability                              84,597        53,466
Pension and post-retirement liabilities             8,923         9,518
Other liabilities                                   5,326         3,670
Total liabilities                                   402,100       440,293
Commitments and contingencies                                    
Stockholders' equity:                                            
Common stock, $0.01 par value, 50,000,000 shares
authorized, 21,352,297 shares issued and            213           213
outstanding as of both September 30, 2013 and
December 31, 2012
Additional paid-in capital                          239,609       239,609
Retained earnings                                   176,541       130,030
Accumulated other comprehensive loss                (1,855)       (387)
Total stockholders' equity                          414,508       369,465
Total liabilities and stockholders' equity          $ 816,608     $ 809,758



AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts, unaudited)


                                      Three Months Ended Nine Months Ended
                                       September 30,      September 30,
                                      2013      2012      2013      2012
Revenues:                                                         
Manufacturing (including revenues from
affiliates of $65,678 and $148,660 for
the three and nine months ended        $ 170,943 $ 147,212 $ 476,160 $ 446,273
September 30, 2013, respectively, and
$49,962 and $60,859 for the same
periods in 2012)
Railcar leasing                        8,301     4,267     22,371    8,315
Railcar services (including revenues
from affiliates of $4,307 and $13,461
for the three and nine months ended    19,655    16,751    54,882    49,455
September 30, 2013, respectively, and
$5,855 and $16,858 for the same
periods in 2012)
Total revenues                         198,899   168,230   553,413   504,043
Cost of revenues:                                                 
Manufacturing                          (136,974) (116,497) (371,806) (360,507)
Railcar leasing                        (3,524)   (1,854)   (9,729)   (4,196)
Railcar services                       (15,614)  (13,181)  (43,063)  (38,849)
Total cost of revenues                 (156,112) (131,532) (424,598) (403,552)
Gross profit                           42,787    36,698    128,815   100,491
Selling, general and administrative
(including costs to a related party of
$268 and $864 for the three and nine   (7,161)   (6,360)   (22,091)  (20,388)
months ended September 30, 2013,
respectively, and $146 and $441 for
the same periods in 2012)
Earnings from operations               35,626    30,338    106,724   80,103
Interest income (including income from
related parties of $669 and $2,026 for
the three and nine months ended        672       750       2,042     2,297
September 30, 2013, respectively, and
$727 and $2,201 for the same periods
in 2012)
Interest expense                       (1,512)   (4,414)   (5,853)   (14,630)
Loss on debt extinguishment            —         (2,267)   (392)     (2,267)
Other income (including income from a
related party of $5 and $14 for the
three and nine months ended September  16        18        2,024     37
30, 2013, respectively, and $4 and $10
for the same periods in 2012)
(Loss) earnings from joint ventures    (505)     (849)     (2,282)   31
Earnings before income taxes           34,297    23,576    102,263   65,571
Income tax expense                     (13,327)  (9,566)   (39,737)  (26,196)
Net earnings                           $ 20,970  $ 14,010  $ 62,526  $ 39,375
Net earnings per common share—basic    $ 0.98    $ 0.66    $ 2.93    $ 1.84
and diluted
Weighted average common shares         21,352    21,352    21,352    21,352
outstanding—basic and diluted
Cash dividends declared per common     $ 0.25    $ —       $ 0.75    $ —
share



AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
SEGMENT DATA
(In thousands, unaudited)


                      Revenues                        Earnings (Loss) from
                                                       Operations
                      External Intersegment Total     External Intersegment Total
Three Months Ended                                                      
September 30, 2013
Manufacturing          $        $ 34,824     $ 205,767 $ 32,075 $ 9,633      $ 41,708
                       170,943
Railcar Leasing        8,301    —            8,301     4,155    5            4,160
Railcar Services       19,655   31           19,686    3,292    (13)         3,279
Corporate/Eliminations —        (34,855)     (34,855)  (3,896)  (9,625)      (13,521)
Total Consolidated     $        $ —          $ 198,899 $ 35,626 $ —          $ 35,626
                       198,899
Three Months Ended                                                      
September 30, 2012
Manufacturing          $        $ 38,178     $ 185,390 $ 29,206 $ 5,012      $ 34,218
                       147,212
Railcar Leasing        4,267    —            4,267     2,377    6            2,383
Railcar Services       16,751   221          16,972    2,955    (46)         2,909
Corporate/Eliminations —        (38,399)     (38,399)  (4,200)  (4,972)      (9,172)
Total Consolidated     $        $ —          $ 168,230 $ 30,338 $ —          $ 30,338
                       168,230
Nine Months Ended                                                       
September 30, 2013
Manufacturing          $        $ 135,315    $ 611,475 $ 98,834 $ 29,541     $
                       476,160                                               128,375
Railcar Leasing        22,371   —            22,371    9,963    17           9,980
Railcar Services       54,882   126          55,008    9,680    (11)         9,669
Corporate/Eliminations —        (135,441)    (135,441) (11,753) (29,547)     (41,300)
Total Consolidated     $        $ —          $ 553,413 $        $—          $
                       553,413                         106,724               106,724
Nine Months Ended                                                       
September 30, 2012
Manufacturing          $        $ 170,267    $ 616,540 $ 80,692 $ 28,280     $
                       446,273                                               108,972
Railcar Leasing        8,315    —            8,315     3,994    19           4,013
Railcar Services       49,455   441          49,896    8,694    (96)         8,598
Corporate/Eliminations —        (170,708)    (170,708) (13,277) (28,203)     (41,480)
Total Consolidated     $        $ —          $ 504,043 $ 80,103 $ —          $ 80,103
                       504,043



AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)


                                              Nine Months Ended September 30,
                                              2013            2012
Operating activities:                                         
Net earnings                                   $ 62,526        $ 39,375
Adjustments to reconcile net earnings to net                  
cash provided by operating activities:
Depreciation                                   20,433          17,506
Amortization of deferred costs                 486             487
Loss on disposal of property, plant and        75              —
equipment
Share-based compensation                       4,240           3,810
Change in interest receivable, due from        —               292
related parties
Loss (earnings) from joint ventures            2,282           (31)
Provision for deferred income taxes            23,997          24,703
Adjustment to provision for losses on accounts 14              108
receivable
Items related to investing activities:                        
Realized gain on sale of short-term            (2,008)         —
investments - available for sale securities
Items related to financing activities:                        
Loss on debt extinguishment                    392             2,267
Changes in operating assets and liabilities:                  
Accounts receivable, net                       5,329           (1,995)
Accounts receivable, due from related parties  (9,315)         (1,428)
Income taxes receivable                        (187)           (282)
Inventories, net                               7,994           (36,486)
Prepaid expenses and other current assets      157             (754)
Accounts payable                               (6,927)         5,114
Accounts payable, due to affiliates            (1,345)         150
Accrued expenses and taxes                     11,665          (5,119)
Other                                          (1,779)         (364)
Net cash provided by operating activities      118,029         47,353
Investing activities:                                         
Purchases of property, plant and equipment     (15,343)        (10,444)
Capital expenditures - leased railcars         (108,314)       (143,242)
Proceeds from the sale of property, plant and  2               254
equipment
Purchase of short-term investments - available —               —
for sale securities
Proceeds from the sale of short-term           12,699          —
investments - available for sale securities
Proceeds from repayments of loans by joint     2,100           1,592
ventures
Investments in and loans to joint ventures     (136)           (1,652)
Net cash used in investing activities          (108,992)       (153,492)
Financing activities:                                         
Repayments of long-term debt                   (178,424)       (100,000)
Premium on debt redemption                     —               (1,875)
Proceeds from long-term debt                   99,841          —
Change in interest reserve related to          (3,965)         —
long-term debt
Payment of common stock dividends              (16,014)        —
Debt issuance costs                            (432)           —
Net cash used in financing activities          (98,994)        (101,875)
Effect of exchange rate changes on cash and    (68)            37
cash equivalents
Decrease in cash and cash equivalents          (90,025)        (207,977)
Cash and cash equivalents at beginning of      205,045         307,172
period
Cash and cash equivalents at end of period     $ 115,020       $ 99,195



AMERICAN RAILCAR INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA
(In thousands, unaudited)


                                      Three Months Ended Nine Months Ended
                                       September 30,      September 30,
                                      2013      2012      2013      2012
Net earnings                           $ 20,970  $ 14,010  $ 62,526  $ 39,375
Income tax expense                     13,327    9,566     39,737    26,196
Interest expense                       1,512     4,414     5,853     14,630
Loss on debt extinguishment            —         2,267     392       2,267
Interest income                        (672)     (750)     (2,042)   (2,297)
Depreciation                           7,038     6,220     20,433    17,506
EBITDA                                 $ 42,175  $ 35,727  $ 126,899 $ 97,677
Other income related to short-term     —         —         (2,008)   —
investments
Stock appreciation rights compensation 1,165     997       4,240     3,810
expense
Adjusted EBITDA                        $ 43,340  $ 36,724  $ 129,131 $ 101,487

EBITDA represents net earnings before income tax expense, interest expense
(income), loss on debt extinguishment and depreciation of property, plant and
equipment. The Company believes EBITDA is useful to investors in evaluating
ARI's operating performance compared to that of other companies in the same
industry. In addition, ARI's management uses EBITDA to evaluate operating
performance. The calculation of EBITDA eliminates the effects of financing,
income taxes and the accounting effects of capital spending. These items may
vary for different companies for reasons unrelated to the overall operating
performance of a company's business. EBITDA is not a financial measure
presented in accordance with U.S. generally accepted accounting principles
(U.S. GAAP). Accordingly, when analyzing the Company's operating performance,
investors should not consider EBITDA in isolation or as a substitute for net
earnings, cash flows provided by operating activities or other statement of
operations or cash flow data prepared in accordance with U.S. GAAP. The
calculation of EBITDA is not necessarily comparable to that of other similarly
titled measures reported by other companies.

Adjusted EBITDA represents EBITDA before stock appreciation rights (SARs)
compensation expense and other income related to our short-term investments.
Management believes that Adjusted EBITDA is useful to investors in evaluating
the Company's operating performance, and therefore uses Adjusted EBITDA for
that purpose. The Company's SARs, which settle in cash, are revalued each
period based primarily upon changes in ARI's stock price. Management believes
that eliminating the expense associated with share-based compensation and
income associated with short-term investments allows management and ARI's
investors to understand better the operating results independent of financial
changes caused by the fluctuating price and value of the Company's common
stock and short-term investments. Adjusted EBITDA is not a financial measure
presented in accordance with U.S. GAAP. Accordingly, when analyzing operating
performance, investors should not consider Adjusted EBITDA in isolation or as
a substitute for net earnings, cash flows provided by operating activities or
other statements of operations or cash flow data prepared in accordance with
U.S. GAAP. The Company's calculation of Adjusted EBITDA is not necessarily
comparable to that of other similarly titled measures reported by other
companies.

CONTACT: Dale C. Davies
         Michael Obertop
         636.940.6000